It's a sad fact of downturns: Employees stop speaking their
minds because they fear losing their jobs. For employees watching
the unemployment rate rise, it can seem safer to go along to get
along.

But hear this loud and clear: Employee silence is killing
innovation and perpetuating poorly planned projects that lead to
defective products, low morale and a damaged bottom line, says
Leslie Perlow, an associate professor of organizational behavior at
Harvard Business School in Boston and author of the book When
You Say Yes, But Mean No: How Silencing Conflict Wrecks
Relationships and Companies . . . and What You Can Do About It
(Crown Business). "Behind many broken processes, mistaken
decisions and failed products are people who didn't speak
up," Perlow says.

You need employee input to generate new ideas and keep projects
on track. But how do you encourage honest feedback in tough
times?

Consider Buyerzone.com, a B2B online marketplace for
small-business purchasing based in Watertown, Massachusetts. The
company underwent two rounds of layoffs in 2001, reducing staff
from 80 to 18. For president and CEO Sam Zales, the silence was
deafening.

"Every company has been hit by the external factors of the
economy," says Zales, 39. For employees, he adds, it's
meant "fewer risks and more concern about what's going to
happen."

The challenge today is creating a culture where employees feel
safe to offer constructive criticism-an attitude that starts at the
top, says Bob Phillips, co-author of Absolute Honesty: Building
a Corporate Culture That Values Straight Talk and Rewards
Integrity (AMACOM). "The culture of the company drives a
lot of the behavior," he says.

To keep employees talking, Zales holds a weekly "fireside
chat" where he answers employee questions. He also rewards
employee input that catches problems early on in projects.
"Keep attuned to morale, and when [silence] happens, go
informal with your communication," he suggests.

Silence isn't always bad; Zales uses it strategically to
draw employees out. "When silence persists at a meeting, let
it sit there for a minute to see if someone reacts to your
comments," he says. These changes have helped morale and the
bottom line. Buyerzone.com has 25 employees and projects sales of
about $10 million in 2003.

Diagnose your workplace for warning signs of a silence problem.
These include meetings where a few people do all the talking, a
lack of recognition for feedback, and less brainstorming on
projects. Phillips predicts employers who don't acknowledge the
silence will hear the sound of footsteps once the economy improves.
"A lot of [employees] will leave," he says. "And
they'll start [speaking up] at their new companies."